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Alexandria Real Estate Equities (ARE) vs Salesforce, Inc. (CRM): Which Is the Better Buy in 2026?

As of 2026-08-03, ARE is undervalued at $51, with a DCF intrinsic value of $9106274826 and a margin of safety of 100%. CRM is undervalued at $184, with an intrinsic value of $222981480055 and a margin of safety of 100%. Of the two, CRM has the wider margin of safety.

ARE
Alexandria Real Estate Equities
$51.45
VS
CRM
Salesforce, Inc.
$184.02

Rewards

ARE
  • ★Gross margin of 68.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
CRM
  • ★Gross margin of 77.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Free cash flow has grown at a 31.6% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $5.53 of earning power — management is an exceptional capital allocator.

Risks

ARE
  • ⚠PEG ratio of 3.24 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Net debt/EBITDA of 6.7x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠Altman Z-Score of 0.10 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
CRM
  • ⚠Altman Z-Score of 0.81 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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ARE
CRM
Valuation
$1.41B
Free Cash Flow
$16.55B
N/A
FCF Yield
N/A
N/A
Trailing P/E
21.32
-58.47
Forward P/E
11.86
Quality & Moat
1.14%
ROIC
9.61%
-4.14%
ROE
16.91%
68.59%
Gross Margin
77.64%
3.24
PEG Ratio
0.76
Balance Sheet Safety
0.64
Net Debt / Equity
0.90
N/A
Interest Coverage
N/A
6.70
Net Debt / EBITDA
2.38
5.60%
Dividend Yield
0.96%
ARE: 3Ties: 1CRM: 6
ARECRM

Historical Fundamentals

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ARE

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

CRM

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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ARE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-3.66B
Δ Market Cap
$-96.73
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
CRM
$-0.00
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$14.67B
Δ Market Cap
$-79.12
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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ARE
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $51.45
Fair Value: $9106274826.16
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
CRM
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $184.02
Fair Value: $222981480055.14
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ARE

What growth rate is the market pricing in at $51?

-3.6%
Market-Implied FCF Growth Rate

Market below historical growth — potential opportunity.

CRM

What growth rate is the market pricing in at $184?

-21.2%
Market-Implied Owner Earnings Growth
Standard FCF implies -30.0%

The market implies -21.2% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -30.0%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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ARE
50/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
CRM
58/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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ARE
-2.80
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
CRM
-2.73
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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ARE
Insiders 1.4%Institutions 97.0%Retail & Other 1.7%
No. of Institutional Holders869
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
CRM
Insiders 3.0%Institutions 93.8%Retail & Other 3.2%
No. of Institutional Holders3,568
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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ARE
1
Buys (3M)
6
Buys (12M)
Total value (12M): $2.71M
MARCUS JOEL S
Officer and Director
$347,558
@ $46.34 · 2026-05-06
MARCUS JOEL S
Officer and Director
$320,416
@ $42.72 · 2026-05-05
MARCUS JOEL S
Officer and Director
$410,200
@ $41.02 · 2026-05-04
THOMAS GREGORY CALVIN
Chief Technology Officer
$143,500
@ $41.00 · 2026-04-30
MARCUS JOEL S
Officer and Director
$1.35M
@ $53.92 · 2026-02-12
MCGRATH SHEILA K.
Director
$141,360
@ $45.60 · 2025-12-10
Open market purchases · includes direct & indirect ownership · excludes option exercises
CRM
0
Buys (3M)
4
Buys (12M)
Total value (12M): $26.52M
ALBER LAURA
Director
$500,266
@ $194.58 · 2026-03-19
KIRK DAVID BLAIR
Director
$500,178
@ $194.62 · 2026-03-18
KIRK DAVID BLAIR
Director
$500,722
@ $258.64 · 2025-12-17
MORFIT G MASON
Director and Beneficial Owner of more than 10% of a Class of Security
$25.02M
@ $260.58 · 2025-12-05
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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ARE
1
Sells (3M)
4
Sells (12M)
Total value (12M): $546,506
BINDA MARC E.
Chief Financial Officer
$108,000
@ $54.00 · 2026-06-09
KUHN HALLIE E.
Officer
$25,835
@ $48.20 · 2026-04-17
GOSSETT BRET E.
Officer
$251,792
@ $53.55 · 2026-02-27
ALSBROOK MADELEINE THORP
Officer
$160,879
@ $46.15 · 2025-12-16
ALSBROOK MADELEINE THORP
Officer
$446,202
@ $102.34 · 2024-12-16
MOGLIA PETER M
Chief Executive Officer
$1.02M
@ $102.26 · 2024-12-16
RYAN DANIEL J
Officer
$1.03M
@ $103.31 · 2024-12-11
GAVINET ANDRES
Officer
$2.09M
@ $104.29 · 2024-12-11
KASS HUNTER
President
$530,650
@ $106.13 · 2024-12-09
CAIN JAMES P
Director
$42,456
@ $124.87 · 2024-09-16
CIRUZZI VINCENT R. JR
Officer
$855,756
@ $123.29 · 2024-09-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
CRM
0
Sells (3M)
15
Sells (12M)
Total value (12M): $40.30M
KROES NEELIE
Director
$929,276
@ $238.70 · 2026-01-14
HARRIS G PARKER
Officer and Director
$31.61M
@ $234.70 · 2025-12-02
BENIOFF MARC RUSSELL
Chief Executive Officer
$575,140
@ $255.62 · 2025-10-23
BENIOFF MARC RUSSELL
Chief Executive Officer
$590,102
@ $262.27 · 2025-10-21
BENIOFF MARC RUSSELL
Chief Executive Officer
$567,631
@ $252.28 · 2025-10-20
BENIOFF MARC RUSSELL
Chief Executive Officer
$550,430
@ $244.64 · 2025-10-17
BENIOFF MARC RUSSELL
Chief Executive Officer
$558,810
@ $248.36 · 2025-10-16
BENIOFF MARC RUSSELL
Chief Executive Officer
$536,322
@ $238.37 · 2025-10-15
BENIOFF MARC RUSSELL
Chief Executive Officer
$548,796
@ $243.91 · 2025-10-14
BENIOFF MARC RUSSELL
Chief Executive Officer
$1.10M
@ $244.75 · 2025-10-13
BENIOFF MARC RUSSELL
Chief Executive Officer
$547,344
@ $243.26 · 2025-10-09
BENIOFF MARC RUSSELL
Chief Executive Officer
$539,533
@ $239.79 · 2025-10-08
BENIOFF MARC RUSSELL
Chief Executive Officer
$555,001
@ $246.67 · 2025-09-23
BENIOFF MARC RUSSELL
Chief Executive Officer
$552,798
@ $245.69 · 2025-09-19
BENIOFF MARC RUSSELL
Chief Executive Officer
$545,384
@ $242.39 · 2025-09-15
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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ARE
FearGreed
😨Fear(39/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
CRM
FearGreed
😨Fear(39/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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ARE
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (39)
CRM
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (39)
View ARE Full AnalysisView CRM Full Analysis

Frequently Asked Questions: ARE vs CRM

Is Alexandria Real Estate Equities or Salesforce, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, CRM trades at a 100.0% margin of safety (intrinsic value $222981480055 vs. price $184), compared to ARE's 100.0% margin of safety (intrinsic $9106274826 vs. $51).

Which stock has a wider economic moat, Alexandria Real Estate Equities or Salesforce, Inc.?▼

CRM scores 58/100 (Narrow moat), while ARE scores 50/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Alexandria Real Estate Equities in financial distress?▼

ARE's Altman Z-Score of 0.1 places it in the Distress zone, signaling elevated bankruptcy risk. CRM scores 0.8 (Distress zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Alexandria Real Estate Equities or Salesforce, Inc.?▼

CRM earns 9.6% ROIC versus ARE's 1.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Alexandria Real Estate Equities's or Salesforce, Inc.'s?▼

CRM's dividend earns a safety score of 88/100 (Very Safe), compared to ARE's 59/100 (Borderline). CRM has raised its dividend for 1 consecutive years.

ARE vs CRM: Which Is the Better Buy in 2026? | SafetyMargin.io